Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 MONTGOMERY INCORPORATED Comparative Balance...

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Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net $ 57,800 14,300 $ 57,900 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Total current liabilities Salaries payable Common stock, no par value Equity Retained earnings Total liabilities and equity 128,200 200,300 71,000 (32,100) $ 239,200 $ 34,200 600 34,800 172,900 31,500 $ 239,200 17,600 101,700 177,200 60,200 (22,200) $ 215,200 $ 36,900 800 37,700 160,100 17,400 $ 215,200 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 61,800 (25,600) 36,200 7,700 9,900 18,600 4,500 $ 14,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net $ 57,800 14,300 $ 57,900 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Total current liabilities Salaries payable Common stock, no par value Equity Retained earnings Total liabilities and equity 128,200 200,300 71,000 (32,100) $ 239,200 $ 34,200 600 34,800 172,900 31,500 $ 239,200 17,600 101,700 177,200 60,200 (22,200) $ 215,200 $ 36,900 800 37,700 160,100 17,400 $ 215,200 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 61,800 (25,600) 36,200 7,700 9,900 18,600 4,500 $ 14,100 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $12,800 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year